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Jul, 2013

Are Certified Coins Really Worth the Cost?

Written By Brian Ford

The internet can be a blessing and a curse, and one perfect example of this can be found in the gold market. The battle between authentic gold dealers and marketing companies has continued for years. Even if you eliminate the companies that are more about marketing than investments, a war wages between coin dealers and bullion dealers. Many companies pay hundreds of thousands of dollars each month to boost their visibility on Google, Yahoo and Bing, and as a result the most honest results are not always easily found.

Bullion dealers and marketers often claim online that certified coins are a waste of money, because they carry high premiums and because confiscation will never happen again. Even if the government did confiscate gold, some say, they could easily take certified coins, too.

The truth is, certified coins are NOT for everyone. If you buy gold with the intention of selling short-term, don’t buy certified gold. Certified gold can be more profitable than bullion, but the cost of buying into the certified market is higher, meaning you need to hold your coins for a year or so before those extra profits come into play.

If you plan on moving your gold to another country, you may not want to buy certified coins. However, the increased historic profitability and the advantageous profit-to-risk ratio of certified coins over bullion may cause you to reconsider. Additionally, the United States is not the only nation that has seized gold from its citizens, so depending on where you’re shipping the gold and that nation’s specific confiscation laws, certified coins might be a good fit.

Companies will continue to write page after page of text shamelessly promoting their recommendations while bashing the reputation of other products and companies, but the fact of the matter is that some people are better off with certified coins while some people are better off with bullion. To find out which type of gold works best for you, feel free to grab a complimentary copy of one of our award-winning investment guides below.